About Chex Systems
Chex Systems is a coalition of banks that add, maintain and share data which pertains to a customer’s savings and checking accounts. Chex Systems was founded in 1971. Chex Systems was bought by the eFunds Corporation in 1999. Today, over 95% of banks in the United States use Chex Systems. Chex Systems database hold nearly 10 million names and accounts. Although most users of Chex Systems are banks, over the past half decade there has been an increasing number of credit unions that are utilizing the system. The primary purpose of Chex Systems is that it is a risk management system. Moreover, it provides banks information on new customers wishing to open up a checking or savings account. If a potential customer were to be in the Chex Systems database, it is highly likely they will not be accepted by the bank. The Chex Systems database is often referred to as the “banking blacklist”.Typically, a customer ending up on the blacklist will be banned from opening up any type of account for five years. However, it is important to note that this is only for banks which are members of Chex Systems. Non-member banks do not have access to Chex Systems, and will use a different set of metrics to assess a customers risk. In order for a person to end up in the Chex Systems database they must be reported by a bank which is a member to the system. The process usually includes the bank closing any and all existing accounts of a customer and adding the customer’s name to the database. When bank adds a name to the database they must record the reason. There are several ways in which a person can end up in the Chex Systems database. The most common way for a customer to be added to the Chex Systems database is by account abuse. Account abuse includes anything from drawing a check on non-sufficient funds or uncollected funds to overdrawing on the account. Another way for a person to enter the database is through fraud. Fraud makes up less than 4% of all persons in the Chex Systems database.Disputing information on a Chex Systems report can be done by contacting Chex Systems. The 4 methods of contacting Chex Systems are listed below.Mail:
Chex Systems, Inc.
7805 Hudson Road, Suite 100
Woodbury, MN 55125Fax: 602.659.2197
Phone: 800.428.9623
Website: www.consumerdebit.com